The Reserve Bank of India said it has joined “Project Nexus”, a multilateral international initiative to enable instant cross-border retail payments by interlinking domestic Fast Payments Systems (FPSs).

Nexus, conceptualised by the Innovation Hub of the Bank for International Settlements (BIS), aims to connect the FPSs of four ASEAN countries (Malaysia, Philippines, Singapore, and Thailand); and India, who would be the founding members and first mover countries of this platform.

An agreement to this effect was signed by the BIS and the Central Banks of the founding countries -- Bank Negara Malaysia (BNM), Bank of Thailand (BOT), Bangko Sentral ng Pilipinas (BSP), Monetary Authority of Singapore (MAS), and RBI on June 30, 2024, in Basel, Switzerland.

Indonesia, which has been involved from the early stages, continues to be involved as a special observer.

Fast payment systems

“The platform can be extended to more countries, going forward. The platform is expected to go live by 2026. Once functional, Nexus will play an important role in making retail cross-border payments efficient, faster, and more cost effective,” RBI said.

The Central Bank noted that it has been collaborating bilaterally with various countries to link India’s FPS – the Unified Payments Interface (UPI), with their respective FPSs for cross-border person-to-person (P2P) and person-to-merchant (P2M) payments.

“While India and its partner countries can continue to benefit through such bilateral connectivity of Fast Payment Systems, a multilateral approach will provide further impetus to our efforts in expanding the international reach of Indian payment systems,” RBI said.

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